Pune-based renewable energy solutions provider Suzlon Energy Limited has reported a turnaround with a net profit after tax of ₹370 million (~$4.93 million) in the third quarter (Q3) of the financial year (FY) 2022 compared to the net loss of ₹130 million (~$1.73 million) in the previous quarter.

The company posted net revenue of ₹15.97 billion (~$212.98 million) in Q3, an increase of 18% compared to ₹13.47 billion (~$180.80 million) in Q2.

The earnings before interest, taxes, depreciation and amortization (EBITDA) stood at ₹2.86 billion (~$38.15 million) in Q3 compared to ₹2.32 billion (~$31.16 million) in Q2. The EBITDA margin stood at 17.9%.

Ashwani Kumar, Chief Executive Officer, Suzlon Group, said, “While the Indian wind energy industry continues to face several issues, not allowing the sector to unlock its full potential, the Q3 of FY 2022 saw some good policies for the sector. Most of these were around interstate transmission system (ISTS), renewable energy bundling, and a few state-level wind energy policies, making it a well-rounded environment going forward.”

The company, in its statement, outlined the favorable policies rolled out by the government helping the sector and its way forward to increase contribution to the renewable sector through hybrid projects.

In the first nine months (9M) of FY 2022, Suzlon reported an 87% increase in net revenue to ₹4.07 billion (~$54.29 million) from ₹2.17 billion (~$28.92 million) in the same period the previous year.

EBITDA during 9M FY 2022 was ₹6.36 billion (~$84.79 million), an increase of 48% from ₹4.28 billion (~$54.26 million) registered in the 9M FY 2021.

According to the company’s investor presentation, Suzlon has orders from customers such as Adani Group, Apraava Energy, and Enel Group for 920.6 MW of wind turbines. The company also states that the hike in goods and service tax (GST) from 5% to 12%, coupled with the increase in the price of commodities and freight charges, will have an adverse impact on the company’s margins. Supply chain challenges continue to affect the availability and the costs of components.

Suzlon has a cumulative global installation of ~19.1 GW of wind energy capacity. The company also held a cumulative market share of around 33% in India.

Suzlon announced that it had won an order from Apraava Energy (formerly CLP India) to develop a 252 MW wind power project. The project is in Sidhpur, Gujarat, and is expected to be commissioned in 2022. Suzlon will install 120 units of S120-140m wind turbine generators (WTGs) with a hybrid lattice tubular tower, with a rated capacity of 2.1 MW each.

In July 2020, Suzlon announced that it had completed restructuring its debt with unanimous approval from its secured lenders.